China Fishery WELCOMES strategic investment by The Carlyle Group

· US$190 million (S$266 million) private placement of 113.5 million new shares and 26.7 million warrants to The Carlyle Group

· Investment will reinforce China Fishery's position as a reliable and responsible supplier of sustainable fish products to the global market and animal protein supply chain

· Expected value add from Carlyle at Board and business level further positions China Fishery for long-term growth, particularly in market expansion and operational efficiency improvement

· Carlyle will further enhance fishing sustainability practices with the Company through the establishment of a Corporate Social Responsibility

China Fishery Group Limited an industrial fishing company, announced a conditional private placement of 113,513,514 new shares and 26,666,666 warrants to global alternative asset manager The Carlyle Group for a total consideration of up to US$190 million (S$266 million). The investment will be in the form of 113,513,514 new ordinary shares ("New Shares") in China Fishery at an issue price of S$1.85 per New Share ("Share Issue Price") and 26,666,666 warrants, each carrying the right to subscribe to one New Share in China Fishery ("Warrants"), at an exercise price of S$2.10 per Warrant. As a result of the transaction and upon exercise of all the Warrants, Carlyle, through its affiliates, will hold approximately up to 13.62% of the enlarged share capital of China Fishery. The newly issued shares will provide China Fishery with additional capital to pursue strategic investments in the global fishing industry and further improve the operational efficiency of the Company.
Mr. Ng Joo Siang, Group Managing Director of China Fishery, commented, "We are delighted that Carlyle, a well-reputed global investment firm, has become a strategic investor in China Fishery. The investment is an endorsement of our business strategy and our strong position in the fishing industry, as well as recognition of the growth prospects of the industry and the Group." Mr. Patrick Siewert, Senior Director of Carlyle, said, "China Fishery is a well-run company with an established track record and well-earned position in the global fishing industry. We have confidence in the company's forward-thinking management, proven business model and growth strategies. We believe China Fishery will make good use of the expansion capital and our value-add to establish itself as a reliable and responsible supplier of fish products to the global market. We have a long-term commitment to China Fishery and will partner with the management to grow its businesses and to further advance its corporate social responsibility commitments, particularly to set higher standards in sustainable practices for the industry." Mr. Ng added, "Carlyle's strategic investment strengthens our shareholder base and further enhances our corporate governance and social responsibility practices. China Fishery is committed to managing its activities in a responsible and sustainable manner, we will initiate a sustainability assessment of our operations in consultation with independent experts and key stakeholders to further advance our on-going commitment to be a responsible supplier. In addition to the new capital that will help fuel our expansion plans, China Fishery can also benefit from leveraging Carlyle's extensive network, acquisition and financing expertise and strategic insights. With Carlyle's guidance and contributions at the Board level, we look forward to taking China Fishery to greater heights and delivering sustainable growth in shareholder value." UBS AG acted as financial advisor to China Fishery and HSBC acted as financial advisor to Carlyle.